Violence Continues, Ukraine Credit Rating Cut by S&P

Violence Continues, Ukraine Credit Rating Cut by S&P

Standard & Poor’s said the downgrade reflected “our view that the political situation has deteriorated substantially”.

It downgraded the economy by one notch, from CCC+ to CCC.

Ukrainians government’s plans to forge closer ties with Russia rather than with Europe was protested by his own citizen.

S&P also put Ukraine on a “negative outlook”, suggesting any downgrades could be possible.

“We believe [the current situation] raises uncertainty regarding the continued provision of Russian financial support over the course of 2014, and puts the government’s capability to meet debt service at increasing risk,” the agency said.

“We consider that the future of the current Ukrainian leadership is now more uncertain than at any time since the protests began in November 2013.”

The protests began in November last year after Ukrainian government under President Viktor Yanukovych, rejected a far-reaching accord with the European Union in November 2013 in prefer stronger ties with Russia.